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IPG Photonics (IPGP) Q1 2025 earnings results (first quarter 2025)
10-Q filed May 6, 2025
IPG Photonics (IPGP) reported revenue of $228M for the first quarter 2025 (Q1 2025), -10% from a year earlier and -3% from the quarter before. Operating margin was 0.8%, net earnings $3.8M (1.6% of revenue).
IPG Photonics, Q1 2025: revenue $228M (-10% year over year), operating margin 0.8%, net earnings $3.8M, operating cash flow $13.4M. The chart follows the revenue to costs, profit and cash.
| Q1 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $228M | -3% | -10% |
| Gross profit | $89.8M | -0.6% | -8% |
| Operating profit | $1.8M | -87% | -90% |
| Net earnings | $3.8M | -52% | -84% |
| Operating cash flow | $13.4M | -82% | -75% |
What changed
Revenue was $227.8M in Q1 2025, down 10% year over year and down 3% from the previous quarter. High Power Continuous Wave ("CW") Lasers was the largest line at 30% of revenue. High Power Continuous Wave ("CW") Lasers lost $21.4M year over year (down 24%), 88% of the total change.
Gross margin was 39.4%, up 0.7 points from a year earlier. Operating profit was $1.8M, a 0.8% margin (down 6.8 points year over year). Operating expenses grew 12% against a revenue fall of 10%. Net earnings were $3.8M, down 84% year over year. The effective tax rate was 64.6%. Non-operating items added $8.8M, 83% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was $13.4M (down 75% year over year), 358% of net earnings. Non-cash charges added back $15.3M of depreciation and amortization and $10.8M of share-based compensation. Working capital and other items used $16.4M. Capital expenditures of $24.8M exceeded it, leaving free cash flow of −$11.4M.
Questions
What was IPG Photonics' revenue in the first quarter 2025?
IPG Photonics (IPGP) reported revenue of $228M for the first quarter 2025 (Q1 2025), -10% from a year earlier and -3% from the quarter before.
Was IPG Photonics profitable in the first quarter 2025?
Operating profit was $1.8M (0.8% of revenue) and net earnings $3.8M.
Source: IPG Photonics 10-Q on SEC EDGAR.